[0818 Taiwan Stock Pre-Market] Foreign Investors Buy Heavily with NT$45.4 Billion, Countering Trust Fund Selling Pressure; Container Shipping 'Big Three' and Optical Communication Rally Together – 'Strong Revenue, Institutional Buying' Targets: Wanhart, Lianjun, Chroma

On the previous trading day (17th), Taiwan's stock market was driven higher by strong performances in high-end IC substrates, optical communication CPO, and container shipping stocks. The weighted index opened higher and continued upward, closing up 46.26 points at 45,857.27, with a turnover of NT$979.4 billion, remaining firmly above short-term moving averages.

From a positioning perspective, foreign investors aggressively bought a net NT$45.447 billion in the spot market, while trust funds sold a net NT$17.747 billion to rebalance portfolios, reflecting a battle between bullish and bearish forces.

I. Market Analysis

The centralized market saw robust bullish momentum on the previous trading day. The weighted index closed up 46.26 points (+0.10%) at 45,857.27, with daily turnover reaching NT$979.407 billion. Among the three major institutional investors, foreign investors bought a net NT$45.447 billion, trust funds sold a net NT$17.747 billion, and proprietary traders bought a net NT$1.405 billion, resulting in a combined net buy of NT$29.106 billion. Meanwhile, the OTC Index was dragged down by profit-taking in small-to-mid cap electronics stocks, closing down 2.63 points (-0.66%) at 398.32, with turnover of NT$175.166 billion. Institutions collectively sold a net NT$6.101 billion in OTC-listed stocks. Technically, the overall market maintains a bullish structure.

II. Strong Sectors

• Container Shipping (Average Gain +7.22%): Benefiting from geopolitical route diversions, tight vessel capacity, and rising transoceanic freight rates due to peak-season restocking in Europe and the U.S., WAN HAI (2615-TW) surged to its daily limit at NT$99.6, YANG MING (2609-TW) jumped 6.01% to NT$54.7, and EVERGREEN (2603-TW) rose 5.71% to NT$231.5.

• Gallium Arsenide & Optical Communication CPO (Average Gain +6.34%): Surging demand for 800G/1.6T high-speed transmission and silicon photonics in AI data centers drove strong gains. IET-KY (4971-TW) hit the upper limit at NT$528, United Microelectronics (3081-TW) soared 9.84% to NT$2,790, and Sanechips (2455-TW) climbed 9.88% to NT$417.

• IC Substrates / Carrier Boards (Average Gain +3.10%): High demand for multi-layer ABF carrier boards used in AI server chips fueled rallies. UNIMICRON (3037-TW) surged nearly to its limit, gaining 9.80% to NT$1,120 ahead of its earnings call, Kinsus (3189-TW) rose 4.99% to NT$905, and Nanya PCB (8046-TW) fluctuated to close at NT$1,295.

III. Weak Sectors

• Computer Motherboards (Average Loss -4.40%): Despite GIGABYTE (2376-TW) reporting a record-high Q2 EPS of NT$9.86, short-term profit-taking overwhelmed the market, pushing shares to the lower limit at NT$358. ASRock (3515-TW) retreated 3.29% to NT$220.5, while Biostar (2399-TW) edged up to close at NT$47.

• Notebook Computers (Average Loss -3.27%): Morgan Stanley downgraded its Q3 notebook shipment forecast, prompting short-term capital to exit the PC ODM sector. Compal (2324-TW) fell 3.59% to NT$41.65, Wistron (3231-TW) dropped 3.36% to NT$187, and Acer (2353-TW) declined 2.63% to NT$31.45.

IV. Institutional Investment Picks

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The individual securities recommended and analyzed by our company have no improper financial interests. Past performance does not guarantee future profitability. Investors should make independent judgments, conduct careful evaluations, and assume all investment risks.